To include as many of the client's risks as possible in a single insurance product, multi-line treaties or contracts are insurance or re-insurance treaties (contracts) whose cover extends over several lines or classes of business. Typically these lines of business have different characteristics such as association with different risks and perils, subject to different accounting conditions, and/or location in different geographical territories. In addition to a single premium, multi-line treaties have a combined deductible, i.e. an aggregate deductible, and a combined limit, i.e. an aggregate limit. Nevertheless, it is possible that the different lines of business covered in a multi-line treaty are also associated with their own individual limits. Generally, difficulties with multi-line treaties, that typically combine different liability and property classes of business, lie in rating and monitoring claims experience and in managing provisions of capital (costs of capital). Management of provisions of capital is particularly difficult in cases where the different lines of business included in the treaty correspond to different business areas of the insurer or re-insurer. Depending on the lines of business, some losses to be covered may become known within the treaty period or soon thereafter, others may become known only years after the treaty period. Consequently, it is difficult to assess the influence of the combined limits of a multi-line treaty onto its components related to the different lines of business and to determine the costs of insured losses to be covered by the individual business areas.